At a consultation workshop held on November 10, the Carbon Market Division under the Department of Climate Change (the Ministry of Agriculture and Environment) provided updates on key proposed regulations.
Regarding climate change adaptation, the draft mandates announcing climate change scenarios every five years. These scenarios will serve as the foundation for impact assessments and risk identification across development strategies and plans.
Ministries, sectors, and localities will assess losses and damages while developing tailored adaptation solutions. The draft also introduces a monitoring framework linking implementation results with investment resources and management responsibilities, prioritizing water security, food security, ecosystems, and key infrastructure.
For greenhouse gas emission management, facilities emitting 3,000 tons of CO2 equivalent or more annually must conduct inventories. Select facilities in energy, transport, industrial, commercial, and waste treatment sectors will also fall under this mandate based on specific technical thresholds.
The draft adds a Measurement, Reporting, and Verification (MRV) mechanism based on national standards to ensure accurate and verifiable data, which is essential for allocating quotas and facilitating carbon market transactions.
Quota allocation for applicable facilities will continue through the 2027-2028 period under the proposed roadmap. Starting in 2029, an auction mechanism will supplement standard allocation methods. According to the Department of Climate Change, auctions aim to enhance transparency while encouraging businesses to adopt clean technologies and improve energy efficiency.
The draft includes market stabilization measures for instances of abnormal price fluctuations or severe supply imbalances. Solutions include adjusting the timing and volume of auctioned quotas, utilizing reserve quotas, and enhancing transaction monitoring. Establishing national carbon credit standards will ensure emission reduction results are verifiable and prevent double-counting.
At the workshop, Deputy Minister of Agriculture and Environment Le Trong Yen highlighted Conclusion 75-KL/TW dated July 28, 2026, issued by the 14th Central Party Committee, as a key political basis for perfecting environmental protection laws. The goal is building a modern governance system supporting a green and circular economy targeting net-zero emissions by 2050.
On decentralization, the draft proposes that sectoral management ministries monitor Nationally Determined Contributions (NDCs). Localities will directly issue and update the list of facilities subject to greenhouse gas inventories, replacing the current role of the Prime Minister.
Delegates also discussed the pilot quota allocation for thermal power, steel, and cement plants, where inconsistent input data previously created challenges.
A representative from the Ministry of Industry and Trade stressed evaluating pilot outcomes and completing database systems. A representative from the Energy and Environment Consulting Joint Stock Company recommended requiring independent verification only for facilities participating directly in the quota system to reduce compliance costs for businesses.
In response, the drafting committee stated it would adjust regulations to exempt non-quota facilities from mandatory independent verification. The Department of Climate Change will coordinate with the Ministry of Industry and Trade to refine calculation methods and review regulations on carbon credit standards to align with international commitments and domestic operating conditions.
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